Post by troycuthers on May 28, 2019 2:08:59 GMT 1
The two most common options will be a secured or unsecured loan. Each of these have different advantages and disadvantages, so the one you choose should depend on your preferences and circumstances.
A secured loan will use the product that you purchase (caravan/car etc.) as security for the loan. This makes the loan less risky for the lender, meaning that you will probably get a lower interest rate than you would with an unsecured loan.
An unsecured loan is usually a personal loan. One of the biggest advantages of this kind of loan is that you aren't required to use the whole amount on one item like you are with a secured car loan. For example, you could get a personal loan to buy a new caravan with enough money left over to buy all the other gear you need for your trip.
However, unsecured loans are more risky for lenders so you might have to pay a higher interest rate or get approved for a lower amount than you would for a secured loan.
A secured loan will use the product that you purchase (caravan/car etc.) as security for the loan. This makes the loan less risky for the lender, meaning that you will probably get a lower interest rate than you would with an unsecured loan.
An unsecured loan is usually a personal loan. One of the biggest advantages of this kind of loan is that you aren't required to use the whole amount on one item like you are with a secured car loan. For example, you could get a personal loan to buy a new caravan with enough money left over to buy all the other gear you need for your trip.
However, unsecured loans are more risky for lenders so you might have to pay a higher interest rate or get approved for a lower amount than you would for a secured loan.